Media Release
Thursday, 14 August 2003 - MVT60/2003
Gerling NCM To Provide Credit Insurance Services In Australia
Gerling NCM will acquire the Government’s Export Finance and Insurance Corporation’s (EFIC) short term export credit insurance business next month, Trade Minister Mark Vaile announced today.
“The Government is confident that Gerling NCM and other private sector insurers will cater for the short term export credit insurance requirements of Australian exporters and ensure that they are plugged-in to the rapidly evolving global credit insurance market,” Mr Vaile said.
“Gerling NCM’s acquisition is a win for exporters as it brings an industry leader to the market which means more choice for exporters and access to world class services, particularly for smaller exporters.
“Gerling NCM has comprehensively demonstrated its ability to support Australian exporters and improve services to them through their alliance with EFIC since early 2002.”
The Gerling NCM alliance with EFIC has shown that the private sector has taken a massive lead in this industry with global networks and sophisticated IT underwriting systems providing a range of services to exporters in which smaller insurers like EFIC could not compete.
This acquisition, which is subject to Gerling NCM receiving an appropriate license from the Australian Prudential Regulation Authority to operate in Australia, is expected to be completed at the end of September.
EFIC’s Medium Term Structured Trade and Project Finance Business will continue to provide exporters and investors with a range of medium term insurance, guarantee and financing products in areas not covered by the commercial sector. The National Interest Account (NIA) will also continue to be managed by EFIC to support exports.
“An NIA short term export credit facility has also been established to safeguard exporters’ interests,” Mr Vaile said.
“The facility will enable the Government to support Australian exporters in significant instances where private sector support is not available, as occurred during the East Asian crisis in 1997/98 when the Government had to step in to assist exporters.”
EFIC is Australia's Export Credit Agency - a Commonwealth Government statutory authority which helps facilitate and encourage Australia's export trade by offering trade finance services in areas not covered by the commercial sector.
Gerling NCM, in the process of being renamed Atradius, is the world’s second largest credit insurer with a total turnover of $2.25 billion in 2002 and a global market share of approximately 25 per cent. It makes 12,000 credit decisions daily covering world trade worth more than $608 billion annually. It also has access to information on more than 45 million buyers worldwide.
Contact: Matthew Doman 02 6277 7420